In re East Side Investors

This case on appeal involves two issues, (1) whether appellees are entitled to attorney fees under Georgia law, and (2) if so entitled, whether the claim for attorney fees was a provable debt in bankruptcy. In the proceedings below, the judge of the bankruptcy court, while holding a claim for attorney fees as a provable debt in bankruptcy, ruled that the debt had not been collected in this case and that appellees were not entitled to attorney fees. The district court, while agreeing that the debt was provable in bankruptcy, overruled the holding by the bankruptcy court that appellees were not entitled to attorney fees. We affirm the decision of the district court. In February 1977, the general partners of East Side Investors (East Side) executed three promissory notes in favor of certain creditors (Mills Group). Each note contained the following ""attorney's fees"" provision: